Delhi EV Policy provides another push for faster e-2W adoption, beneficial in the long-term: ICRA
Commenting on the policy, Shamsher Dewan, Vice President, ICRA said, “We believe that the policy holds multiple attractive propositions for the potential electric two-wheeler customers
New Delhi: The recent Electric Vehicle (EV) Policy 2020, finalized by the Government of National Capital Territory (NCT) of Delhi augurs well for faster electric two-wheeler adoption, ICRA Ratings said in a press note.
Commenting on the policy, Shamsher Dewan, Vice President, ICRA said, “We believe that the policy holds multiple attractive propositions for the potential electric two-wheeler customers. With a progressive EV Policy in place, the two-wheeler consumers will be able to contribute towards alleviating the situation while benefiting from the lower upfront cost as well as the total cost of two-wheeler ownership.”
Coupled with FAME-II incentives, upfront e-2W prices would be 25-30% lower than conventional 2WsICRA
The high upfront cost of the electric two-wheeler vis-à-vis conventional two-wheeler has been one of the main hindrances for faster electric two-wheeler penetration, which will get addressed through the attractive demand incentives under the Policy.
As per ICRA, coupled with the FAME-II incentives, the upfront electric two-wheeler prices would become 25-30 percent lower than conventional two-wheelers (for basic models) thereby proving to be a catalyst for accelerated electric two-wheeler penetration.
While scrappage incentive is first of its kind in an EV policy, industry response to the requirement of matching participation by OEMs/dealers and de-registration of conventional two-wheelers remains to be seen, pointed Dewan.
“In addition to sizable cost savings, to both the consumer and the Government (on crude imports), several non-economic factors are also conducive for faster electrification in two-wheelers like lower dependence on commercial charging infrastructure, range per charge meeting daily commute requirements, growing environment and health concerns, among others,” added Dewan.
Delhi EV policy 2020 seeking to drive rapid adoption of battery electric vehicles (BEVs) offers subsidies, waivers, and incentives on the purchase of EVs on one hand and dis-incentivizes the use of the Internal Combustion Engine (ICE) based vehicles on the other.
Apart from electric two-wheelers, the incentives would be offered across segments like e-rickshaws, goods carriers, electric cars and buses and would be incremental to those offered under the FAME-II Scheme.
Source: ICRA
